- 1). Pay off any debts you have now. Call up each one you have a debt with, whether they are collection agencies or the business you owe the money to. Get all of your bills together and figure out how much you can pay each one per month. Call each one and tell them how much you can pay each month. They will set you up with a payment plan and send you a bill each month for your new monthly payment. Pay the bills as soon as they come in every month.
- 2). Obtain a credit card for people with bad credit (see Resources below). You will have to pay an annual fee and a fee to get the credit card started. This may seem frivolous at first, but this may be the only way you can get a credit card. Once you have paid the annual fee and any other fees associated with this new credit card, you can start charging, but do so carefully--charge a small amount (an amount you know you can pay off each month). When the bill comes in, pay your entire balance off, not just the minimum payments.
- 3). Pay more money on your debts when you can. The only way to keep the bills out of collections is to call the billing department and set up a payment plan, and follow through by paying the agreed-upon payment every month when the bill comes in. If, for any reason, you are not able to make the payment, call as soon as possible to sort something out.
- 4). Sign up with an agency that will track your credit for you. Privacy Matters can track your credit report for you for a low monthly fee. It will alert you every time something changes with your credit report. This will ensure that you are aware of everything going on with your credit (see Resources below)
- 5). Limit how much you allow people to access your credit report. Anytime you apply for any type of credit (loans, credit cards, gas cards, department store cards) you are allowing them to access your credit report. This will show up on your credit report, and the more people you have accessing your credit report, the worse it looks.
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